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In: Accounting

What is Walmart's current marginal tax rate with calculations?

What is Walmart's current marginal tax rate with calculations?

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Expert Solution

Walmart’s Marginal tax rate used for financial modeling.

Marginal tax rate is the highest rate of tax you will pay on your income, based on which band or threshold your income falls in. Your effective tax rate, on the other hand, is the total amount of tax you pay expressed as a percentage of your income. It is calculated as follows

Provision For Taxes (/) Earnings Before Tax (=) Marginal Tax Rate

Walmart Inc. engages in the retail and wholesale operations in various formats worldwide. The company operates in three segments: Walmart U.S., Walmart International, and Sam's Club. It operates supercenters, supermarkets, hypermarkets, warehouse clubs, cash and carry stores, discount stores, drugstores, and convenience stores; membership-only warehouse clubs; ecommerce websites, such as walmart.com, walmart.com.mx, asda.com, walmart.ca, flipkart.com, and samsclub.com and mobicommerce applications. The company offers grocery products, including meat, produce, natural and organics, deli and bakery, dairy, frozen foods, alcoholic and nonalcoholic beverages, and floral and dry grocery, as well as consumables, such as health and beauty aids, baby products, household chemicals, paper goods, and pet supplies; and health and wellness products. It also provides electronics, cameras and supplies, photo processing services, wireless, movies, music, video games, and books; stationery, automotive, hardware and paint, sporting goods, and outdoor living and horticulture; apparel for women, girls, men, boys, and infants, as well as shoes, jewelry, and accessories; and home furnishings, housewares and small appliances, bedding, home decor, toys, fabrics, crafts, and seasonal merchandise, as well as brand name merchandise. In addition, the company offers fuel and financial services and related products, including money orders, prepaid cards, money transfers, check cashing, and bill payment. It operates approximately 11,500 stores and various e-commerce Websites under the 56 banners in 27 countries.

Following companies as similar to Walmart Inc. because they operate in a related industry or sector based on their considered size, growth, and various financial metrics to narrow down the list to the ones listed below.

Walmart Marginal Tax Rate Benchmarks
Name Marginal Tax Rate
Walmart Inc. Premium
Consumer Staples Premium
Costco Wholesale Corporation Premium
PriceSmart, Inc. Premium
Target Corporation Premium
Dollar General Corporation Premium
eBay Inc. Premium
Kohl's Corporation Premium
Dollar Tree, Inc. Premium
J. C. Penney Company, Inc. Premium
Amazon.com, Inc. Premium
Macy's, Inc. Premium

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